30 day rentals a viable option in WA?

Question

I'm an aspiring real estate investor looking to get a better sense of the WA market (born and raised in Tacoma, and currently own a house in Seattle). One concept that has caught my eye is "mid-term", or 30 day rentals. From what I've been able to research so far, they seem to give you some of the ROI benefits of STR while staying on the right side of anti-STR regulations. I'm also attracted to the idea of finding a place that my fiancee and I could occasionally use as a vacation home while still renting out most of the year.

With the recent shifts in policies towards remote work among many of Seattle's biggest tech employers, it seems that there might be a bigger opportunity going forward to offer furnished rentals that really cater to "digital nomads" looking to work in beautiful/interesting locations (with high-speed, dependable internet, a good work station, and probably other amenities).

Just based on where we enjoy visiting, I'd love to find a place in one of these locations: Vashon, Whidbey, San Juans, Bellingham/Chuckanut, Port Townsend, Port Angeles, Walla Walla; in OR, Cannon Beach, Manzanita, Portland, Willamette Valley. But not sure how tough it may be to find something where the numbers work within those areas, as I've probably listed most of the most expensive places in the state after Seattle/Bellevue. I know travelling nurses are one of the traditional customer segments within the 30 day rental market, but I'm guessing they probably wouldn't be my target in any of the places I'm looking.

I'd really appreciate any insights, tips/tricks or watch outs for the 30 day rental market in WA, and especially any success stories. Thanks very much!

Sherief Elbassuoni · Answer

@Max B., I have rentals that are getting operated on rent by room style. I list them on Furnished finder for traveling nurses and on Airbnb.

I agree with you, with the work-from-home style, tenants now have a lot of flexibility for where to live.

I noticed that software engineers really care for amenities besides the location. For example, some of my tenants ask for physical internet connection (wifi alone is not enough), so I created a router mesh that connects all the rooms.

I also noticed that when I have most of the house as software engineers (two of them were working on the video editing side), my 1200 Gigabyte data maxed out on the third week, so I upgraded to unlimited data to make them happy.

I also put smart locks and smart gadgets to make the house appeal more to them.

I noticed when I take the extra mile, once they come, they keep renewing since they are living in a pretty much "smart home"

Max B. · Answer

Very helpful, thank you Sherief. Didn't even think of setting up an ethernet connection, and makes sense to really lean in on the smart home capabilities.

The more I look at this, the more I'm reconsidering whether the locations I'm looking at are really attractive for tech workers / digital nomads. Seems like most of the tech workers that do travel for remote work tend to stick around the main cities, or just go to Hawaii. May have to reassess where I'm looking.

Kim McGinnis · Answer

Hey Max ~ great idea about catering to "digital nomads"! I am new to Washington but worked in the Portland area for 14 years.  I would check out Yamhill County (wine country in Oregon).  The outskirts of McMinnville and or Newberg might be great locations.  Message me if you want some help!

Abbie Little · Answer

I am a realtor in PT and the immediate surrounding areas. In PT city limits your option is the 30dy min but outside the city limits you can do short term. However the market here is crazy strong with lots of cash buyers. So it would probably be best for you to build or rehab. Marrowstone Island would be a pretty dreamy place although good internet may be a bit of a challenge. Deals and cute cottages can still be found in PA. They also have a lot of alleys which set up lots to work well for ADUs with separate access. Their ADUs code caps them at 600sqft and 1bdrm. Feel free to reach out directly if you have any area specific questions.

Travis Timmons · Answer

Been a few months, so I'm not sure if I'm late to the party on this or not. You mentioned Port Angeles above, which is a place that I have looked closely. They have clearly designed and easy to understand zoning around short term rentals (link below). Towns on the Oregon coast are tough. They seem to be ever changing and difficult. It has been a while since I dug in to those areas and regulations, but I remember Tillamook county being the most STR friendly.

We have a property in Portland that we do mid term leases on - primarily through furnished finder to nurses - not really all that revelatory or helpful to you. The demand for furnished housing is strong though. I always have my eye on OR and WA properties and areas. Have you learned anything useful in the last 4 months regarding the areas that you mentioned?

https://www.cityofpa.us/faq.as...

Max B. · Answer

Thanks Kim! We've been to that area a few times, and really love it there - such a beautiful countryside, and an incredible wine scene. Will take a look at the area around McMinnville and Newberg and reach out if I have questions.

Max B. · Answer

Thanks Abbie! Will take a closer look at the two Ports and definitely reach out if I have any questions. Funnily enough, we're actually spending the weekend on Marrowstone! (our first time there) We'll have to see how the internet is, as you make a good point there - high-speed internet could certainly be a challenge in some of these less developed locations.

30 day rentals a viable option in WA?

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